5. The payroll records of a company provided the following data for the weekly p
ID: 2572373 • Letter: 5
Question
5. The payroll records of a company provided the following data for the weekly pay period ended December 7: Earnings and additional deductions for week ending December Year to date Federal Medical carnings through Gross Income Insurance Union United Employee November 30 PayTaxes Deduction DuesWa Ronald Arthur John Baines Ted Carter $125 l 125 150 s s $109,500 |$2,5001-57161 162 S15 $150 30 20 4.500900 45,000 1.000180 0 The FICA Social Security tax rate is 62% and applied to the first S 1 10,100 ofeamings. The FICA Medicare tax rate is 1.45% and applies to all of this week's wages paid to each employee. The federal and state unemployment tax rates are 0.8% and 5.4%, respectively, on the first S7 ,000 paid to each employee. Prepare the jounal entries to (a) accrue the payroll and (b) record payroll taxes expense Wages subject to tax FICA-SS FICA-Modicare FUTA Total Rate Payroll Taxes Exp. Date Account Description Debit CreditExplanation / Answer
Salaries Expenses- Debit $4,400
To Federal tax withholding payable - Credit $1,058
To Insurance withholding payable - Credit $400
To Union dues payable - Credit $30
To United way payable - Credit $200
To Accrued net payroll payable - Credit $2,712
(being payroll entries accrued for the week ending December 7)
Payroll Tax expenses - Debit $336.6
(employer portion of social security and medicare tax)
Federal tax withholding payable - Debit $1,058
Social security Tax payable - Debit $272.8
($4,400*6.2%)
Medicare withholding payable - Debit $63.8
($4,400*1.45%)
To State unemployment tax payable - Debit $237.6
($4,400*5.4%
Federal unemployment payable - Debit $35.2
($4,400*.8%)
To Accrued payroll taxes payable - Credit $2,004
(being net payroll taxes accrued for the week ending December 7)
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